Halozyme Therapeutics Inc. (HALO) filed Quarterly Report for the period ended 2012-06-30.
Halozyme Therapeutics, Inc. has a market cap of $518.4 million; its shares were traded at around $5.96 with and P/S ratio of 9.2.

Highlight of Business Operations:

Revenues under collaborative agreements consisted of recognition of license fees and milestone payments received from our partners of approximately $2.8 million and $21.7 million for three months ended June 30, 2012 and 2011, respectively. The decrease of $18.9 million was primarily due to the $18.0 million in one-time upfront payments we received from the ViroPharma and Intrexon Partnerships which were earned in the three months ended June 30, 2011. Revenues under collaborative agreements also included reimbursements for research and development services from our partners of approximately $4.4 million and $1.3 million for the three months ended June 30, 2012 and 2011, respectively. The increase of $3.1 million in reimbursements for research and development services was mainly due to an increase in PH20 API shipments to Roche and Baxter. Research and development services rendered by us on behalf of our partners are at the request of the partners; therefore, the amount of future revenues related to reimbursable research and development services is uncertain. We expect the non-reimbursement revenues under our collaborative agreements to continue to fluctuate in future periods based on our partners abilities to meet various clinical and regulatory milestones set forth in such agreements and our abilities to obtain new collaborative agreements.

Net Income (Loss)  Net loss for the three months ended June 30, 2012 was ($14.0) million, or ($0.13) per common share, compared to net income of $3.1 million, or $0.03 per common share, for the three months ended June 30, 2011. The increase in net loss was primarily due to the decrease in revenues under collaborative agreements resulting from the receipts of $18.0 million in one-time upfront payments associated with the ViroPharma and Intrexon Partnerships in the prior period and an increase in operating expenses for the three months ended June 30, 2012 as compared to the same period in 2011.

Selling, General and Administrative  SG&A expenses were $12.2 million for the six months ended June 30, 2012 compared to $8.0 million for the six months ended June 30, 2011. The increase of $4.2 million, or 53%, was primarily due to a $3.2 million increase in compensation costs, including a $967,000 increase in stock-based compensation, and a $624,000 increase in sales and marketing expenses mainly associated with the reintroduction of Hylenex recombinant in December 2011. The increase in compensation costs was due to an increase in headcount resulting from the expansion of our commercial department. In connection with the reintroduction of Hylenex recombinant in December 2011, we expect SG&A expenses to increase in 2012 as compared to 2011.

Net Loss  Net loss for the six months ended June 30, 2012 was $29.1 million, or $0.27 per common share, compared to $6.5 million, or $0.06 per common share for the six months ended June 30, 2011. The increase in net loss was primarily due to the decrease in revenues under collaborative agreements resulting from the receipts of $18.0 million in one-time upfront payments associated with the ViroPharma and Intrexon Partnerships in the prior period and an increase in operating expenses for the six months ended June 30, 2012 as compared to the same period in 2011.

Net cash used in operations was $33.1 million during the six months ended June 30, 2012 compared to $7.4 million of net cash used in operations during the six months ended June 30, 2011. This change was primarily due to the increase in net loss of $22.6 million adjusted for non-cash items including stock-based compensation and depreciation and amortization in addition to changes in working capital for the six months ended June 30, 2012 as compared to the same period in 2011. The increase in net loss was due to the decrease in revenues under collaborative agreements resulting from the receipts of $18.0 million in one-time upfront payments from the ViroPharma and Intrexon Partnerships in the prior period and an increase in operating expenses for the six months ended June 30, 2012 as compared to the same period in 2011.

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